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Immigration and Pension Benefits in the Host-country

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Abstract
This paper examines the role that low-skilled immigrant labor force plays in determining the benefits of the public pension of the host population. With an overlapping-generations model in continuous time which allows to identify which groups of native population are better or worse off with immigration and a fully redistributive pension system, we find that the retirement benefits and hence the welfare levels of the host population are affected in a different way whether sharing or not pension benefits with immigrants. In this sense, the youngest local population may prefer, contrary to the oldest ones, a policy of closed borders.

Suggested Citation

  • Juan A. Lacomba & Francisco M. Lagos, 2004. "Immigration and Pension Benefits in the Host-country," Economic Working Papers at Centro de Estudios Andaluces E2004/77, Centro de Estudios Andaluces.
    • Handle: RePEc:cea:doctra:e2004_77
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    References listed on IDEAS

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    Cited by:

    1. Tim Krieger, 2014. "Public Pensions and Immigration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(2), pages 10-15, 07.
    2. Assaf Razin, 2013. "MIGRATION into the WELFARE STATE: tax and migration competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 548-563, August.
    3. Tim Krieger, 2008. "Public pensions and return migration," Public Choice, Springer, vol. 134(3), pages 163-178, March.
    4. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    5. Takuya Matsuyama & Tomomi Miyazaki, 2017. "The Effects of Immigration on Social Expenditure in Host Countries," Discussion Papers 1708, Graduate School of Economics, Kobe University.
    6. Catia Batista & Janis Umblijs, 2014. "Migration, risk attitudes, and entrepreneurship: evidence from a representative immigrant survey," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-25, December.
    7. Tim Krieger, 2014. "Public Pensions and Immigration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 10-15, July.
    8. Assaf Razin & Efraim Sadka, 2014. "Migration and Welfare State: Why is America Different from Europe?," NBER Working Papers 20450, National Bureau of Economic Research, Inc.
    9. Krieger, Tim, 2005. "Renten und Zuwanderung: Ein Überblick über neue Ergebnisse der Forschung," Arbeitspapiere der Nordakademie 2005-04, Nordakademie - Hochschule der Wirtschaft.
    10. Yohei Sekiguchi & Masatoshi Jinno, 2018. "Beveridge Versus Bismarck Pension Systems: Considering Fertility Rates And Skill Distribution," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(05), pages 1141-1153, December.
    11. Gurgen Aslanyan, 2012. "Immigration Control & Long-Run Population Welfare," CERGE-EI Working Papers wp453, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    12. Gurgen Aslanyan, 2014. "The migration challenge for PAYG," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 1023-1038, October.
    13. repec:ces:ifodic:v:12:y:2014:i:2:p:19116205 is not listed on IDEAS
    14. Marina De Angelis & Marcella Corsi & Daniele Frigeri, 2017. "The determinants of entrepreneurship for migrants in Italy. Do Italian migrants become entrepreneurs by “opportunity” or through “necessity”?," Working Papers CEB 17-031, ULB -- Universite Libre de Bruxelles.
    15. Igor Fedotenkov & Lex Meijdam, 2014. "Pension reform with migration and mobile capital: is a Pareto improvement possible?," International Economics and Economic Policy, Springer, vol. 11(3), pages 431-450, September.
    16. Di Liddo, Giuseppe, 2018. "Immigration and PAYG pension systems in the presence of increasing life expectancy," Economics Letters, Elsevier, vol. 162(C), pages 56-61.

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    Keywords

    Immigration; welfare; pension benefits.;
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